Hot Topics:

MassHealth exemptions and funeral expenses

Q: My mother is 95 years old and we are considering nursing home. She has a total of approximately $20,000 in assets. Can we save some of this money before applying for her nursing home services?

A: Do you realize your mother has been alive to witness three Red Sox world championships? With such a lengthy past, it is unlikely she will be around for another -- or to pass the requisite MassHealth five-year look-back period for gifts.

If we accept that she can't simply transfer her funds to you, let's find ways to spend her money down to $2,000 on the day of her nursing-home admission. At that point, MassHealth will cover her nursing-home costs.

Here are a few opportunities for helping your mother spend down her assets:

* Legal services. Take her to see an attorney who can help the difficult MassHealth application process. You will thank your mom for taking this incredible administrative burden off your back.

* Funeral-burial expenses. Your mom's money can be used toward the cost of a burial plot; up to $1,500 cash per person can be specifically set aside for funeral and burial expenses. This amount must be in separate, identifiable accounts or in the form of life-insurance policies up to $1,500 per person specifically set up for funeral and burial expenses. Money can also be set aside for in an irrevocable prepaid burial contract or an irrevocable burial in reasonable amounts for future payment of funeral or burial expenses.

* A shopping spree.

Advertisement

Your mom can buy new clothes or a TV. It is best to track these expenses (don't use large sums of cash withdrawals from her account) and try to keep each single check or debit-card transaction under $1,000. This will help during the financial review of your application with MassHealth.

Attorney James Haroutunian practices real estate, estate planning and business law in Billerica at 630 Boston Road and can be reached with questions at 978-671-0711 or via email James@hlawoffice.com. His website is www.hlawoffice.com.

Welcome to your discussion forum: Sign in with a Disqus account or your social networking account for your comment to be posted immediately, provided it meets the guidelines. (READ HOW.)
Comments made here are the sole responsibility of the person posting them; these comments do not reflect the opinion of The Sun. So keep it civil.